If you are behind on your mortgage payments and need help stopping a foreclosure action in Tennessee, you may have several legal options. At the Law Office of Eric K. Fox, we will carefully review your situation and help you understand what steps can be taken to defend a foreclosure action and keep your home.
Explore Your Options With an Experienced Nashville Region Mortgage Fraud Attorney
In most cases, a foreclosure lawsuit is started by the mortgage company against a homeowner after several months of trying to collect payments. People in this situation are often experiencing severe financial pressure as the result of a job loss, medical bills, or other financial difficulties and may even be considering bankruptcy.
When this financial strain is coupled with declining real estate values or concerns with how the mortgage terms were structured at the beginning of the loan, some people may think that walking away from the house is the best option. Before you do this, however talk with an experienced attorney who can look at the specifics of your situation and provide you with the understanding of your legal rights.
While every foreclosure action is unique, there are several general methods that most homeowners can consider, including:
- Chapter 13 bankruptcy — mortgage scrutinization: This method is the most effective way to stop a foreclosure action because when the bankruptcy action is filed with the court, an automatic stay is issued and places a hold and stops all other lawsuits against you. Since 2010, the bankruptcy Trustee for the middle district of Tennessee has been carefully reviewing all mortgage claims. This scrutinization means that mortgage companies need to produce a copy of the note signed by the homeowner and also show evidence that the note was properly endorsed. If the mortgage company cannot produce this information, the Trustee can "disallow" the mortgage lien, thereby rendering the loan void and unenforceable.
If the mortgage is disallowed through the bankruptcy process, then attorney Eric Fox can file an adversary case for a declaratory judgment in bankruptcy court. The purpose of this action is to obtain an order stating that the mortgage lien on the home has been declared void and that the property is free of all loans and encumbrances.
- Real Estate Settlement Procedures Act (RESPA): if a homeowner does not need to seek the protection of a bankruptcy, but believes that there are problems with the way in which payments have been handled by the mortgage company, it is important to understand a homeowner's rights under RESPA. This is a federal law designed to protect homeowners from lenders who charge excessive fees or who fail to properly credit payments.
We can investigate and thoroughly review your loan documents to determine if this is a concern in your case. If it is, the next step is to contact the loan servicer in writing by sending a qualified written request to obtain an accounting of all mortgage payments and fees associated with the mortgage. Once the servicer receives the complaint, they must acknowledge the complaint in writing within 20 business days and resolve the complaint within 60 business days by correcting the account or giving a statement of the reasons for its position.
- Truth in lending: This option should be considered for homeowners who have refinanced their loan within the last three years and have transferred from one mortgage company to another mortgage company. In these cases, we will conduct a review of the refinance documents for a nominal fee. If we discover a legal defect in the paperwork, the mortgage can be rescinded — but this must be done within three years of the closing. In cases where rescission is not an option, the homeowner may be eligible for other options, including loan modification.
Contact a Hendersonville Foreclosure Defense Law Firm
If you are concerned that your rights were violated when you signed mortgage papers, contact our Hendersonville consumer rights law firm to schedule your free initial consultation with lawyer Eric A. Fox today. We can be reached toll free at 888-808-7604 or locally at 615-338-5291.
We are located in the Hazel Path office complex and offer free parking near the lake, off Main Street. Our office hours are Monday through Friday from 8:30 a.m. to 5:00 p.m., with evening and weekend appointments available upon request.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.